Are Luxury Salon Services in Trouble in 2023?

 
 

In an October 2022 Forbes article, “according to the general definition—two consecutive quarters of negative gross domestic product (GDP), the U.S. entered a recession in the summer of 2022.” 

All the signs are there: people are tightening their budgets, being more cautious about where they spend their money, and the price of just about everything is skyrocketing. 

And in the salon, many clients are leaning away from more luxurious services like hand-tied extensions, luxury color services, and more.

Which leads a lot of stylists and salon owners to ask whether luxury salon services are in trouble in 2023…but are they?

Let’s dig in. 

This recession will not be like any we’ve had before.

Here’s the thing: indicators are showing this won’t be like the recessions we’ve had before. It won’t be like in 2008 where we were preparing for the worst. Not like in 2009 where Groupon reigned supreme, or like in 2011 where it felt like survival skills were necessary. 

The difference? As of October 2021, there was $20+ trillion in the economy. 80% of U.S. currency has been printed in the last three years.

In short, while the price of things has gone up, people, generally speaking, have more cash and they’re holding onto it tighter than ever. 

What does that mean for luxury services?

It means that your clients might cut back on your more expensive services unless you can showcase your perceived value (we’ll get to that in a moment). Stylists and salon owners across the industry report that clients are spacing out their appointments or shifting their more luxury services to something more low maintenance. 

Does that mean you need to pivot your entire luxury salon business?

Not necessarily! Each business is unique and in a different situation. But, generally speaking, you need to increase your perceived value to keep your clients coming in and paying for those services. 

What exactly is perceived value? Glad you asked! Perceived value is the difference between a prospective customer’s evaluation of the benefits and costs of one business/opportunity when compared with other businesses/opportunities. 

In other words, it’s how a potential or current client perceives your business’s value when compared to another stylist or salon. 

And to not only survive but thrive in a recession, you need to boost yours ASAP. 

So how do you actually do that? We broke it down in this blog post, or, if you’d like to hear it straight from Britt, join Thrivers Society today to watch the replay of her Training & Development (T&D) session on perceived value! 

Lean into the Lipstick Effect 

The term “lipstick effect” has been buzzing around the industry lately, but what does it really mean? We break it down more here, but basically, it means that when the economy hits a rough patch, people seek out other ways to find joy. Instead of expensive makeovers, consumers might pick up a lipstick. Instead of a fancy meal out, they might stop in for a nice coffee. 

How does that translate to your business? Take a look at your services and consider if there’s a way that you can offer that tangible treat that your target market craves. 

In 2023, luxury services can still be sustained, but know that consumers are choosing different. Take a look at your target market’s pain points, your perceived value, and your current offerings to determine a plan to help you thrive in 2023.

Need some help? Thrivers Society has all the resources you need to build and grow your business, no matter the economic climate. Click here to learn more and join now. 

 

3 Practical Ways to Increase Your Perceived Value

 
 

We’ve gotten a lot of DMs recently that all ask the same thing: “I know I need to increase perceived value…but how do I do that?”

We get it. Perceived value can feel hard to define. 

Think of it like this: have you ever wanted something so badly that it hardly mattered what it cost? You’d put it on a credit card if you had to, make excuses to justify why you “deserve” it, can hardly sleep because you’re so excited.

That’s what happens when perceived value outweighs the cost. You feel like you’re getting all the value without emptying out your wallet. 

And today, perceived value is queen. 

Clients are more particular about where they’ll spend their money, and they will only part with it when they feel like the value of the product, service, whatever, outweighs the cost.  

So how can you actually increase your perceived value?

Let’s break down the top three ways! 

Give your target market what they’re looking for on social media 

Your social media isn’t about you or the photos of your cute dog. It’s for your current and prospective clients. 

Instead of showing off photos of Rufus (who, yes, we agree is absolutely adorable), create and share posts that highlight what it’s like to be in your chair, how they’ll feel when they leave your chair, and why you’re special. 

And instead of sharing photos of that mocha you got from the coffee shop around the corner, use that social media real estate to show your current clients why you are THE best stylist to solve their biggest beauty problems. 

Update and streamline your website

After a potential guest has learned that you exist and checked out your social media, they will Google you and end up on your website…making it crucial that your website hooks them in. 

How? 

We give you the exact website frameworks that have been tested throughout the industry in Website Academy Templates, but here’s what you need to know right now: 

  • Don’t focus on building a pretty website. Focus on building one that’s optimized to attract and engage your target market.

  • Make sure all the links on your website work. ALL THE LINKS. A broken link might not feel like a big deal, but that could be the deciding factor for a potential client.

  • Streamline your navigation. Make it easy for potential and current clients to find what they need. 

Level up your consultation skills

Consultations aren’t just for your first appointment with a new client or a quick “Hey Kim. Want the same thing as last time? Okay, I’ll mix up your color” at the beginning of the appointment. Consultations should be in-depth, detailed conversations that make sure you and the client are on the same page before you pick up your shears. 

Here are some key strategies to level up your consultations:

  1. Lean into the top four learning styles (visual, kinesthetic, auditory, verbal) in every consultation to make sure you are truly connecting with your client. 

  2. Confirm the plan before you get started. It never hurts to double-check.

  3. Do a closing consultation before they leave to make sure they’re 100% in love with their look. Don’t just whip off the cape and announce their total. 

Increasing your perceived value doesn’t have to be complicated, but it has to be strategic. Take a good, hard look at your business, consider your target market’s pain points, and think about how you can level up your services to exceed their expectations.

If you want to learn more about increasing your perceived value, watch Britt’s Thrivers Monthly Training & Development session, click here to join Thrivers, get access to the Replay Vault, and dig into the full breakdown. 

 

It's Time To Ditch Fear-Based Decisions

 
 

Be honest…when was the last time you let fear take control?

Maybe it was with a financial decision. Maybe it was when you were trying to decide whether or not to post that caption. Maybe you were wondering if you should really charge that client the full cost of their services. 

Here’s the thing: when you let fear take control, you put your own priorities in the backseat. 

Why? Because—and chances are this will come as no surprise—fear-based decisions are ones you make out of fear instead of fact.

But fear is your unconscious trying to protect itself when you do something new or outside your comfort zone. It is, at the core, a safety mechanism. And if you want to achieve true success, sometimes you have to learn how to turn the fear off. 

We get it. It might be tempting to let fear take control right now when the industry is in an evolution, to be 100%, it’s not what you need to rise to the top.

Let’s break down the questions to ask if you aren’t sure if your decision is fear-based or not, and our top three tips to move past fear and into success! 

How to tell if you’re making a fear-based decision

Every time you feel like fear might be taking the wheel, ask yourself this: 

Do I feel like something bad will happen if I don’t make this decision or choose the wrong option? 

Be honest because whatever the answer is will help you gauge whether or not you’re basing your decision on fear or fact. 

How to move past fear 

Now that you know whether or not fear is steering your decisions, you can start to move past it. 

Step 1 | Name the fear that’s holding you back. 

Is it the fear of not having enough time? Money? Worrying about what other people will think of you? 

Naming what you’re afraid of is simple yet incredibly freeing because once you identify it, it becomes less daunting and solutions begin to appear. 

Step 2 | Make a contingency plan IF those fears come true

Listen, we can’t always predict what’s in the future, but having a backup plan for IF something bad were to happen can provide a lot of peace. 

Sit down with a notebook and write out the what ifs of that fear. What could happen if you do X? What could happen if Y is the result? Then detail how you can respond to each situation. 

Not a big fan of journaling? Talk it out with a mentor or coach to create an action plan. (Need a coach? Keep an eye on our Instagram because we’re dropping big news in the next month!) 

Step 3 | Feel the fear and do it anyway

We get it. This is easy to say and can be incredibly difficult to put into practice. 

But as much as possible, lean into the fear. Like we mentioned earlier, fear is typically the unconscious trying to protect itself. Generally, that means you’re doing something that you perceive as out of your comfort zone. 

But—and lean in for the good stuff—that’s where the magic is. 

The key to massive success is knowing why you’re doing what you’re doing and making fact- (not fear!)based decisions in all you do. 

So acknowledge the fear. Name it. Lean into it. You’ve got this.